RIM Q2 profits up, beats forecasts

Research In Motion (RIM) has posted exceptional profits for the second quarter of 2010, exceeding analyst expectations, despite fierce competition to its smartphone marke share and difficulties with world governments over encrypted calls.

Revenue grew by 31 percent compared to the same time last year, coming in at $4.62 billion. 79 percent of the revenue came from devices, with 17 percent coming from services, only one percent from software, and the remaining three percent from other sources.

Net profit for the three month period ending on August 28 was up from $475.6 million last year to $796.7 million this year.

Share values also increased, with earnings per share up a massive 76 percent to $1.46 compared to the same period in 2009.

RIM said that its smartphone shipments grew by over 45 percent compared to the second quarter of 2009, now totalling 12.1 million, with a total BlackBerry shipment amount of 115 million to date. 

However, its latest offering, the BlackBerry Torch has received a very cool welcome, while Verizon and Good Technology have announced an enterprise offering for rival Android smartphones, which may see RIM lose ground in the business market where it enjoys success.

RIM also posted higher subscription rates to its BlackBerry account service, up 56 percent from last year to more than 50 million people.

Jim Balsillie, co-CEO of RIM, said that the company expects the growth to continue into the next quarter, particularly with the launch of new products like the BlackBerry Torch in new regions, the addition of new promotions, and the high demand of the holiday season.